Bill Text: IN HB1194 | 2011 | Regular Session | Introduced
Bill Title: Restaurant permits in economic development areas.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2011-01-25 - Representatives Dodge and Candelaria Reardon added as coauthors [HB1194 Detail]
Download: Indiana-2011-HB1194-Introduced.html
Citations Affected: IC 7.1-3-27.
Synopsis: Restaurant permits in economic development areas. Allows
the alcohol and tobacco commission to issue a retailer's permit to the
proprietor of a restaurant located in an economic development area, a
redevelopment project area, an urban renewal area, or a redevelopment
area within a city or town, if the area meets certain investment and
assessed value requirements. Provides that the permits are not subject
to the quota provisions. Requires an applicant for a permit in such an
area to: (1) expend at least $75,000 over five years for renovation or
rehabilitation of a restaurant building; or (2) commit to a capital
investment in a restaurant building of at least $75,000 that is expended
before the permit is issued. Provides that an applicant is not eligible for
a permit in the redevelopment area issued outside the quota unless the
applicant demonstrates that the applicant attempted to obtain a permit
subject to the quota restrictions and a permit was not readily available.
Prohibits the permit from being transferred to another location.
Effective: July 1, 2011.
January 10, 2011, read first time and referred to Committee on Commerce, Small Business
and Economic Development.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
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Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
alcohol and tobacco.
Chapter 27. Retailer Permits in Redevelopment Areas
Sec. 1. As used in this chapter, "applicant" means an applicant for a permit in an area described in section 4(b) of this chapter.
Sec. 2. As used in this chapter, "municipality" means a city or town.
Sec. 3. As used in this chapter, "permit" means a one, two, or three way permit issued to the proprietor of a restaurant to sell alcoholic beverages for on-premises consumption only.
Sec. 4. (a) The quota provisions of IC 7.1-3-22 do not apply to a permit under this chapter.
(b) A permit may be issued under this chapter to a person to operate licensed premises located in an economic development area, a redevelopment project area, an urban renewal area, or a redevelopment area established under IC 36-7-14, IC 36-7-14.5, or
IC 36-7-15.1 that:
(1) is located within a municipality; and
(2) meets the following requirements:
(A) At least twenty-five percent (25%) of the total assessed
valuation (as of the most recent assessment date preceding
the application for the permit) in the area must consist of
property assessed as commercial property.
(B) The total amount of public and private investment in
real and personal property within the area must be at least
two hundred thousand dollars ($200,000) over a period of
the preceding five (5) years.
Sec. 5. The commission may not issue a permit under section 4
of this chapter unless the applicant presents verification, as
specified by the commission, that the licensed premises is located
in an area described in section 4(b) of this chapter.
Sec. 6. To be eligible to receive a permit under this chapter, an
applicant must:
(1) expend at least seventy-five thousand dollars ($75,000),
over the five (5) years preceding the permit application, for
the rehabilitation or restoration of the building in which the
licensed premises is to be located; or
(2) commit to a capital investment in the building in which the
licensed premises is to be located:
(A) in an amount of at least seventy-five thousand dollars
($75,000); and
(B) that is expended before the permit is issued.
Sec. 7. A premises for which a permit is issued under this
chapter must:
(1) be open to the public at least ten (10) hours each day, five
(5) days each week; and
(2) have a seating capacity of at least fifty (50) persons.
Sec. 8. The commission may issue one (1) permit for each
monetary threshold described in section 4(b)(2)(B) of this chapter,
and for each major fraction of the threshold. The initial fee for a
permit issued under this section is fifty thousand dollars ($50,000).
The renewal fee for a permit under this subsection is one thousand
dollars ($1,000).
Sec. 9. (a) The commission may not transfer a permit issued
under this chapter to another location.
(b) If a premises for which a permit is issued under this chapter
goes out of business, or the permit is revoked or not renewed, the
permittee shall surrender the permit to the commission. The
commission may issue a permit to an applicant within the same
area described in section 4(b) of this chapter to replace the permit
that was surrendered if the applicant meets the following
requirements:
(1) The applicant's business meets the requirements of this
chapter. However, the applicant does not have to satisfy
section 4(b)(2)(B), 6, or 7 of this chapter.
(2) The applicant has not sold a retailers' permit subject to
IC 7.1-3-22 for premises located within the area or within five
hundred (500) feet of the area.
Sec. 10. (a) An applicant is not eligible for a permit issued under
section 4 of this chapter unless the applicant demonstrates that:
(1) the applicant attempted to obtain a permit subject to a
quota under IC 7.1-3-22 within the municipality containing
the area described in section 4(b) of this chapter for which the
applicant sought the permit; and
(2) to the best of the applicant's knowledge, a permit
described in subdivision (1) was not readily available.
(b) As used in this section "readily available" means available
under a standard of economic feasibility, as applied to the specific
circumstances of the applicant, that includes the following:
(1) The fair market value of the permit, if determinable.
(2) The size and scope of the applicant's proposed operation.
(3) The existence of mandatory contractual restrictions or
inclusions attached to the sale of the permit.
